Remain short | 07 October 2021

Technical observation

Yesterday I expected price to rise towards the resistance level 1.3786; however, price declined and penetrated below the supportive zone 1.3612-1.3603 with a big red candle confirming the previous breakout above the zone was false. GBP retraced to the just broken zone twice and on both retracements it was contained below the key zone 1.3612-1.3603, right now price is trading with an increasing bearish bias and I expect a continuation of this bearish movement to the supportive level 1.3423 followed by a clear breakout below it. My advice, if you sold GBP at the zone 1.3612-1.3603, remain short with your take profit at 1.3423 and stop loss at 1.3663.

Trade recommendation

Remain short with your take profit at 1.3423.